Amazon FBA vs FBM for Sellers
Compare Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM): costs, control, Prime eligibility, and tax implications.
Fulfillment Overview
Amazon FBA
Amazon stores, picks, packs, and ships your products. Handles customer service and returns. Automatic Prime badge.
Pros
- ✓Prime badge increases sales
- ✓Amazon handles fulfillment & CS
- ✓Multi-Channel Fulfillment available
- ✓Buy Box advantage
Cons
- ✗Higher per-unit cost
- ✗Long-term storage fees
- ✗Inventory commingling risk
- ✗Creates sales tax nexus in US
Best for: High-volume sellers, Prime-focused strategy
Cost: ask the operator for the current rate; this page does not invent a range
Setup: Confirm timing with the operator or competent authority 1-2 weeks
Amazon FBM
Seller stores and ships products directly to customers. Seller handles all fulfillment, customer service, and returns.
Pros
- ✓Lower per-unit cost
- ✓Full inventory control
- ✓No storage fees to Amazon
- ✓Brand packaging control
Cons
- ✗No automatic Prime badge
- ✗Must handle all CS yourself
- ✗Slower shipping = lower ranking
- ✗More operational complexity
Best for: Low-volume, heavy/oversized, or custom products
Cost: Professional seller account $39.99/month + referral fees
Setup: Confirm timing with the operator or competent authority 1-3 days
FAQ
Does FBA create sales tax nexus in US states?+
Yes. Storing inventory in Amazon's US warehouses creates physical nexus in those states, requiring sales tax registration, collection, and filing. Amazon collects as marketplace facilitator in most states, but you may still need to register.